Healthcare Costs, Medical Debt and Bankruptcy

With the recent federal healthcare mandate, many people think that medical bankruptcy will become a thing of the past. Hopefully this will be true in the future, but that provides little comfort to individuals and families already buried with medical-related debt.

In 2007, more than 90 percent of people who filed for bankruptcy because of medical costs owed more than $5,000 to healthcare creditors. The other medical bankruptcies were due to loss of income as a result of an injury or a health condition.

Insurance companies typically cover anywhere from 60 to 80 percent of major medical costs. For someone who is diagnosed with cancer or another serious illness, this may not be enough to prevent a medical bankruptcy.

A survey from 2007 reported that approximately 70 percent of US citizens either have difficulty paying for medical treatment or have medical debt. In 2009, 50 million Americans still had no health insurance. Another study found that 63 percent of Americans carrying medical debt avoided future medical treatment.

If you are carrying medical debt and struggling to pay bills, you may want to contact a bankruptcy attorney to evaluate your options.

Benjamin Brand Services-Chicago bankruptcy attorneys.

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